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Thursday, 03/30/2006 4:28:44 PM

Thursday, March 30, 2006 4:28:44 PM

Post# of 326352
From the 10K: Strategy

NeoMedia Mobile

NeoMedia has spent the past decade as a pioneer in the now confirmed space
of linking the physical world to the electronic world, developing, patenting and
implementing four generations of continuously refined switch technology that
bridges these environments.

During the past two and a half years, NeoMedia has introduced
PaperClick(R) for Camera Cell Phones and the PaperClick(R) GoWindow and
CodeWindow, to capitalize on the rapidly emerging mobile marketing sector and
using it as a basis from which to demonstrate the effectiveness of its
PaperClick platform. With this industry positioned for rapid worldwide growth,
NeoMedia believes its poised to gain global market share, both from its patented
PaperClick direct-to-web platform and from the platforms, applications and
services of its recent acquisitions.

The acquisitions of Mobot, Sponge, Gavitec and 12Snap have placed NeoMedia
into a leadership position in the wireless solutions industry. Taken together
with NeoMedia's patented PaperClick(R) platform, NeoMedia offers marketers
end-to-end solutions to market to their target audiences via mobile devices
through SMS (text messaging), MMS (multimedia messaging), direct-to-Internet
GoWindow(TM), and CodeWindow(TM), Visual Recognition, and 1-D barcode and 2-D
smartcode recognition.


NeoMedia intends to gain market share in the global mobile marketing
industry through organic growth from existing markets and new and existing
clients, together with geographic growth in new and expanding markets. With the
combination of platforms, services, content and applications now available
through NeoMedia, each NMM business sub-unit has the ability to offer its
existing client base ever more sophisticated and innovative mobile marketing
services and solutions. With the growth of cell phone usage world-wide, and by
having many global brands such as McDonald's, Coca-Cola, adidas and Unilever as
existing clients, NeoMedia intends to bring mobile marketing services to
additional geographic regions around the globe,
notwithstanding the immense
potential in the virtually untapped mobile marketing industry in the United
States, which is about 1-2 years behind Europe and Japan in its maturity.


Beyond consumer goods, the PaperClick platform is also an effective
platform for other industry markets and can be utilized through other devices,
such as personal computers. As such, NeoMedia is pursuing opportunities in areas
as diverse as homeland security, banking, search, food labeling, inventory
tracking and multiple enterprise applications--from affinity programs to mobile
service solutions to complete company management systems.

NeoMedia Micro Paint Repair

NeoMedia Micro Paint Repair (NMPR) offers its clients a "one-stop shop" to
obtain a comprehensive line of technologically and environmentally advanced
products and processes for interior and exterior automotive rejuvenation. Its
proprietary Micro Paint Repair system can dramatically reduce costs for current
auto body repair facilities, or create a new profit center for auto-related
businesses that do not currently offer paint repair. Likewise, NMPR can help
automotive repair businesses offer complementary services beyond micro paint,
not only through its product line, but also through training on how to do
additional interior and exterior repairs.

NMPR markets its comprehensive automotive rejuvenation system to a myriad
of automotive industry businesses, from auto dealers to body shops to glass
repair shops, and more. Two facilities, NMPR's headquarters in Fort Myers,
Florida and its Canadian head office in Calgary, Alberta offer repairs directly
to customers, and on-site training to business clients.

Geographically, outside of the United States NeoMedia has expanded its
micro paint repair offering into: China through partnerships with Jinche
(Automart), DuPont and PPG; Scandinavia, through its distribution agreement with
WI-THO AS in Norway; Mexico and Latin America, through its distribution
agreement with Micropaint de Mexico; Australia/New Zealand, through a
distribution agreement with Micro Paint Systems (Australasia) Limited of New
Zealand; and Canada, through a distribution agreement with MDA Co-Auto.


NeoMedia Telecom Services

NTS is a fully implemented alternate billing agent within the Local
Exchange Carriers (LEC's) billing system in Canada. NTS's vision is to continue
expanding its live and automated operator service capability focusing on making
emerging web-based information and transaction services easier to access and pay
for. NTS has aligned itself to provide globally accessible products, coupled
with sophisticated proprietary technology, allowing it to offer this global
marketplace fully-integrated or unbundled solutions. NeoMedia believes that the
future growth of the industry is largely based upon the ability of service
providers to offer multiple billing options for consumer services thus
increasing market penetration.

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